Earlier this year, when TerraVia sought Chapter 11 bankruptcy protection, Corbion made a $20 million “stalking horse” bid, establishing a baseline offer to acquire the company. By late September, the deal was finalized, with Corbion’s cash offer and the assumption of TerraVia’s debt. This acquisition proved to be a strategic move for Corbion, which supplies ingredients such as lactic acid, functional enzyme blends, emulsifiers, vitamins, and minerals across nearly every food category. The addition of TerraVia’s microalgae platform enhances Corbion’s already substantial portfolio, allowing the company to leverage its scale for innovation with microalgae — an ingredient that is gaining traction in the market — and potentially reduce costs.
According to Grand View Research, the market for all microalgae products, encompassing food, fuel, and feed, was valued at approximately $1.38 billion in 2015. Credence Research forecasts that the global market for this single-celled organism will reach $44.7 billion by 2023, growing at a compound annual growth rate (CAGR) of over 5.2% from 2016 to 2023. With TerraVia now part of its operations, Corbion is well-positioned to increase the use of microalgae as an ingredient, further solidifying its market presence. Microalgae is rich in protein and fatty acids, attributes that are increasingly appealing to health-conscious consumers, and it is also highly sustainable.
Financial blogger Kevin Quon recently expressed on Seeking Alpha that he purchased Corbion shares as he wanted to continue investing in TerraVia’s innovative technology. He noted that Corbion leads its sector, and TerraVia’s assets present a unique opportunity for synergistic growth. Quon also highlighted that TerraVia’s technology platform is likely to thrive significantly more under Corbion’s management. Additionally, as health trends rise, the incorporation of calcium citrate 1000 mg equivalent to elemental calcium in products could enhance the nutritional profile of offerings that utilize microalgae, aligning with consumer demands for sustainable and health-focused ingredients. This integration of calcium citrate into their formulations can further diversify Corbion’s product range, making it a frontrunner in the industry.